With dual core processors on the horizon, Microsoft has clarified their …

Share this story

For companies that plan to move to dual core solutions from AMD or Intel, they will face a variety of licensing schemes from software vendors. Some vendors plan to charge per processor core, while others will charge per physical chip or somewhere in between. With dual core chips on the horizon and speculation that Longhorn may require a dual core processor, many have been waiting to see how Microsoft would handle multiple core chips in terms of licensing. Microsoft previously decided to only charge per physical processor, and now they have decided to treat dual core chips the same way.

Microsoft said that sticking to its current per-processor licensing practice, regardless of the type of processor, will make its pricing more predictable and consistent for its customers and partners.

"We don't believe that charging for chip processor improvements is in the best interest of the industry," said Cori Hartje, director of marketing and readiness in Microsoft's worldwide licensing and pricing group.

Of course, many will say this was the only logical decision for Microsoft because competitors like SuSE charge per processor and Red Hat licenses on a "per system" basis. Nevertheless, this will come as good news to both AMD and Intel as they shift towards multi-core processors and will help drive demand for their hardware. When they are launched, multi-core servers and systems are expected to carry a price premium, but prices are likely to drop as they become more commonplace. Now that Microsoft has clarified their position it will be interesting to see how other vendors react to their decision. Companies that run IBM DB2, WebSphere or Oracle software would have to pay per core and software from BEA Systems would carry a 25% premium when used on dual core systems. These pricing schemes may have to be modified when dual cores gain a foothold and customers balk over being charged a premium for using mainstream systems.